The major problem in the administration and funding of Indian education is that it has been and continues to be the responsibility of diverse federal, state, and private agencies. Currently there are four school systems involved in Indian education: public schools, Bureau of Indian Affairs (BIA) schools, contract schools, and mission and other private schools. There is no accurate count of how many Indian students they serve. There has been, however, a dramatic increase in numbers since a 1972 count, possibly because that count was based solely on teacher recognition of Indian students. Indian education funding is available from many sources and under various laws, each of which has different qualification requirements. Current problems in Indian education which must be faced are the resistance of both the BIA and some Indian officials to new educational policy and a lack of funding for properly qualifying public schools. It is recommended that there be development of a BIA funding formula, an efficient system of control of BIA schools, and a state funding formula. Other recommendations include investigations of the relationships between stated educational goals and budget allocations, the distribution of funds within local education agencies, successful Indian education, and related teacher training. BIA school funding and PL 93-638 Title II funding are discussed in detail. (SB)